In the treatment of American exports and imports,national income accountants

A) subtract exports,but add imports,in calculating GDP.
B) subtract both exports and imports in calculating GDP.
C) add both exports and imports in calculating GDP.
D) add exports,but subtract imports in calculating GDP.

Question

salil saigal · Accepted Answer

Final Answer : D, Explanation :  National income accountants add the value of exports to GDP because exports are a component of domestic production. However, imports represent goods and services produced in other countries and purchased by residents of the country being measured. Therefore, imports must be subtracted from GDP to avoid overestimating the value of domestic production. Hence, national income accountants add exports but subtract imports in calculating GDP.

In the treatment of American exports and imports,national income accountants

A) subtract exports,but add imports,in calculating GDP.
B) subtract both exports and imports in calculating GDP.
C) add both exports and imports in calculating GDP.
D) add exports,but subtract imports in calculating GDP.

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Learning Objectives

Related questions

In the treatment of American exports and imports,national income accountantsA) subtract exports,but add imports,in calculating GDP.B) subtract both exports and imports in calculating GDP.C) add both exports and imports in calculating GDP.D) add exports,but subtract imports in calculating GDP.

Definitions

Learning Objectives

Learning Objectives

Related questions

In the treatment of American exports and imports,national income accountants

A) subtract exports,but add imports,in calculating GDP.
B) subtract both exports and imports in calculating GDP.
C) add both exports and imports in calculating GDP.
D) add exports,but subtract imports in calculating GDP.